Cherkizovo Increased Yields by 39% Compared to Previous Year

December 8, 2014

Cherkizovo Group (LSE:CHE; MOEX:GCHE), the largest meat and fodder manufacturer in Russia, has finalized the results of the 2014 harvest campaign. More than 242,000 tonnes of grain were harvested (gross harvest), or nearly 40% more than the result in 2013, which was about 175,000 tonnes (gross harvest). The standard weight of the grain harvest was 229,000 tonnes. About 60,000 ha were worked in Voronezh, Lipetsk, and Orel Regions during the agricultural campaign.

Detailed data on the grain harvest are given in the table below*:

Item No.

Crop

2013

2014

Threshed

Worked

Yield

Threshed

Worked

Yield

t

ha

centner/ha

t

ha

centner/ha

1

Winter wheat

76,744

15,163

50.6

104,540

16,848

62.0

2

Spring wheat

1,592

493

32.3

20,226

4,302

47.0

3

Corn

43,041

4,852

88.7

42,159

9,973

42.3

4

Barley

23,425

7,165

32.7

25,283

4,592

55.1

5

Sunflower

13,816

3,929

35.2

18,869

7,606

24.8

6

Peas

12,683

6,235

20.3

23,256

6,578

35.4

7

Other

3,355

2,290

14.7

7,929

7,858

10.1

 

Total

174,656

40,127

43.5

242,263

57,757

41.9

Along with an increase in the gross crop harvest, Cherkizovo Group also showed significant improvement in yields. For example, the gross yield of winter wheat increased by 23% from 51 centners/ha in 2013 to 62 centners/ha in 2014. This was facilitated by well-timed investments in a high-tech equipment fleet, strict adherence to the method of sowing winter wheat and the widespread use of new agronomic practices for growing crops.

The Group's experts also noted a record yield of grains and legumes in individual regions in 2014. Winter wheat yields in Voronezh Region reached a record high of 66 centners/ha versus the planned value of 50 centners/ha; pea yields in Orel Region were 46 centners/ha versus the planned value of 30 centners/ha.

Comparative table of the yield of Cherkizovo Group and the Russian average, centners/ha:

 

Cherkizovo
Group,

gross

Cherkizovo
Group,

standard weight

Average
figure for Russia,

gross

Wheat

59.0

56.0

26.1

Barley

55.1

52.3

23.5

Sunflower

24.8

23.6

13.9

Source: Ministry of Agriculture of the Russian Federation, 2014

* All data presented as of December 8, 2014.